What to Think About When Setting Up a Power of Attorney

A power of attorney (POA) is a legal paper that lets someone you trust make decisions for you, particularly if you can’t. It’s like picking a backup person to step in when you need help. Setting one up is a big deal, so here are some simple things to consider to make sure it works the way you want.

1. Who Should You Pick?

The person you choose—called your “agent”—needs to be someone you trust without reservation. This could be a family member or a close friend. They’ll handle things like paying bills or talking to doctors if you’re sick. Ask yourself: Are they good with money? Will they listen to what you want? Picking the right person is super important because they’ll be in charge when you can’t be.

2. What Kind of Power Do They Get?

There are different types of POA. A “general” one gives your agent power over a lot of things, like your bank account or house. A “limited” one only lets them do specific stuff, like selling your car. There’s also a “durable” POA that keeps working even if you get really sick, and a “springing” one that only starts if something happens, like if you can’t think clearly anymore. Think about how much control you want to give and when.

3. When Does It Start and Stop?

You need to decide when your agent’s power kicks in. Does it start right away, or only if a doctor says you can’t make choices? You can also set an end date or say it stops if you cancel it. Be clear about this so there’s no confusion later.

4. What Could Go Wrong?

Sometimes, people misuse a POA. Though illegal, your agent could spend your money on themselves. Or they might make decisions you wouldn’t like. To avoid this, you can add rules, like making them show records of what they do. You could also name a second person to check on them. The best way to address these issues, though, is to make sure you have full trust in the person you select.

Why It Matters

Setting up a power of attorney is like making a plan for the future. It’s not fun to think about being sick or unable to decide things, but picking someone you trust now can save a lot of trouble later. Husbands and wife especially should consider granting power of attorney to each other so that one of them can take action that legally requires both their approval, like selling a house, even after the other can no longer legally make these kinds of decisions. For those who don't have such an obvious choice as a trusted spouse, take your time, think it through, and get it right.

If you’re not sure where to start, talk to someone who understands the law. A good POA keeps you in control, even when life gets tricky!